Managing editor
The city of Marion will no longer buy electricity directly from Westar Energy. Instead, the city will purchase power from Kansas Power Pool.
The decision was made Monday after KPP Chief Executive Officer and General Manager Collin Whitley gave a presentation to Marion City Council.
Currently Marion belongs to KPP with more than 40 cities. Of those, 34 have contracts with KPP. As a member, the city has representatives on a board that meets monthly and determines rates charged to those cities with contracts.
Even though the rate per kilowatt-hour is higher with KPP than Westar Energy — 3.15 cents compared with 1.8 cents — the KPP demand charge is considerably lower, $9.50 compared with $16.36 charged by Westar.
“The difference in the demand charge is a tremendous amount,” City Administrator David Mayfield said.
KPP purchases some electricity from Westar Energy, at cost, with the remaining power coming from a diversified portfolio, Whitley said.
The city had the option of a two-year or 10-year contract. After consideration, the council decided to make only a two-year commitment in case KPP decided to implement a discount for 10-year contracts.
Not included in the rate would be the upgrade of a meter of $10,000 to $12,000, which the city can pay over time, and distribution facility charges of $187 per month.
There also is a one-time fee of $2 per megawatt. The city’s load is 10 megawatts.
The organization also will pay the city’s annual membership fee to Kansas Municipal Utilities.
“Five years of dues will pay for the meter,” Mayfield said.